BILL NUMBER: S182

SPONSOR: PERSAUD
 
TITLE OF BILL:

An act to amend the social services law, in relation to increasing the
federal poverty level requirement for recipients of social services
where it concerns the one-time disregard of earned income following job
entry for up to six consecutive months

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill increases the Federal Poverty Level income limit from two
hundred percent to four hundred percent with regard to the one-time,
six-month earned income disregard for job entrants having completed a
public assistance employment training program, as enacted in the FY
2023-2024 budget, as originally proposed in S.2144 (Persaud).

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subparagraph 8 of paragraph a of subdivision 8 of
Social Services Law Section 131-a by increasing the maximum earning
              

limit from two hundred percent of Federal Poverty to four hundred
percent of federal poverty. The OTDA Commissioner is also directed to
seek any necessary federal waivers.

Section two of the bill provides for an immediate effective date.

 
JUSTIFICATION:

Many public assistance recipients who are working to attain greater
self-sufficiency encounter economic barriers as their rising incomes
disqualify them from various benefits. Such benefits include,but are not
limited to Supplemental Nutrition Assistance Program (SNAP), Medicaid,
childcare and rental assistance. When a household no longer qualifies
for benefits (even with minimum wage incomes), the costs associated with
purchasing healthcare and paying for childcare are often too great and
can thus deter some recipients from fully re-entering the workforce.

Under this legislation, individuals entering the paid workforce after
participating in a qualified state or federal job training program (or
welfare-to-work program) would be allowed to continue receiving benefits
alongside earned income for a maximum of six months. This would allow
recipients to save earned income in an amount exceeding state statutory
limits so that recipients can absorb future expenses that will increase
as a result of disqualification from various federal and state benefits.
The Massachusetts Department of Transitional Assistance has implemented
a similar program.

 
PRIOR LEGISLATIVE HISTORY:

2024: S8374A Passed Senate

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.